Building Details

Year built 2018

Floors in Building 1

Listing Agency: Re/Max Property Center Show Phone

Listed By: Faith Pennington · License #112086 Show Phone

Added: Jul 3 Changed: Aug 28 Last Checked: Sep 3 at 12:06PM

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MLS# 21901001

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Investment Insights

Based on property information with market context.

This 1,200-square-foot office building was constructed in 2018 and includes a kitchen, bathroom, central air conditioning, exterior lighting, and curb-and-gutter improvements. The building sits on a 0.2296-acre parcel and is served by public water and public sewer.

Located at 395 McCurdy Avenue S in Rainsville, Alabama, the property provides an established office setting for business operations. Its compact configuration and dedicated building improvements support a range of professional office uses, subject to applicable requirements.

Key Highlights

• 1,200‑square‑foot office building on a 0.2296‑acre parcel
• Built in 2018
• Kitchen and bathroom included

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$8,003

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

3.88%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$160,060 $160.1K

Cap Rate 7%

$114,329 $114.3K

Cap Rate 9%

$88,922 $88.9K

Market Conditions

NOI Build-Up for 1,200 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$13.7K $11.40/SF

− Vacancy

−$3.0K −$2.51/SF

EGI

$10.7K $8.89/SF

− OpEx

−$2.7K −$2.22/SF

NOI

$8.0K $6.67/SF

Area

DeKalb County, AL

Vacancy

22.00%

Lease Rate

$11.40 /SF/Yr

Expense Ratio

25.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$160,060

Cap Rate 7%

$114,329

Cap Rate 9%

$88,922

Alternative Uses

Best Use

Office B

$114.3K

$100.0K – $133.4K (±1% cap)

NOI $8,003 @ 7.0% cap · market cap 3.88%

Second Best

—

—

no second resolved use

Theoretical Best

Healthcare Medical

$193.3K

$169.2K – $225.5K (±1% cap)

NOI $13,532 @ 7.0% cap · market cap 6.57%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Office buildings

Suggested Use

Top Pick Electrical Service Storage Facility Garden Center Furniture & Home Goods Grocery & Convenience Store Plumbing Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

288

Businesses Nearby

Explore this area Business Placement

Demographics for 35986, AL

8,091

Population

3,529

Households

2.3

Avg Household Size

41

Median Age

25%

College-Educated

85%

High-School Grad

43.1 sq mi

ZIP Area

188

Density / Sq Mi

$65,774

Median Household Income

$40,080

Median Earnings

$656

Median Rent

$207,600

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Office building - Office property includes a kitchen, bathroom, and central air conditioning.

Where is this office building located?

The property is located at 395 McCurdy Avenue S Rainsville, AL.

What is the asking price?

The asking price for this property is $205,999.

What are key features of this property?

This property features: 1,200‑square‑foot office building on a 0.2296‑acre parcel; Built in 2018; Kitchen and bathroom included